Binance CEO “CZ” on Monday announced forming an industry recovery fund as the FTX crisis tanks the crypto market. Binance’s recovery fund will help long-running successful projects affected by the liquidity crisis. Crypto platforms can contact Binance Labs to check their qualification for the market recovery fund.
Furthermore, Binance CEO also requested other firms to co-invest in the recovery fund and help recover the market. The crypto prices have crashed and institutional investors losing confidence and trust after one of the largest crypto exchanges FTX filed for Chapter 11 bankruptcy.
The crypto market continues to drag lower after the FTX crisis. Moreover, the contagion has spread to other entities as they fail to recover from earlier Terra-LUNA and liquidity crises, Binance is no exception.
As a result of the crypto market slowdown, Binance CEO “CZ” in a tweet on November 14 announced an industry recovery fund and urges other investors to co-invest.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify.”
Tron founder Justin Sun looks to support and participate in Binance CEO’s initiative to recover the market. He believes it will help good builders and developers to recover from the crisis.
Other entities including Celsius‘ largest investor Simon Dixon like to join the fund and contribute to making it decentralized with the crypto community.
Twitter user Crypto King asked if FTX qualifies as strong but in a liquidity crisis. Binance CEO replied that “Liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.”
In October, Binance Pool disclosed $500 million in the form of a lending facility for struggling bitcoin miners. The crypto miners faced a severe financial crunch after the crypto prices, especially Bitcoin fell over 75% from its all-time high.
Binance’s BNB token price jumps over 4% on the news. The BNB token is currently trading at $280. The 24-hour low and high for BNB are $268 and $281.77, respectively.
Bitcoin and Ethereum prices also recovered massively. Bitcoin (BTC) price soars over 6% in an hour, with the price currently trading at $16,789. Also, Ethereum (ETH) price trades at $1,253, up nearly 7% in an hour. Other altcoins also soared as a result of the jump in top cryptocurrencies.
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